Aused car can be kept for two more years and then sold for an estimated value of $3000, or it can be sold now for $7500. the average annual maintenance cost over the past 7 years has been $500 per year. however, if the car is kept for two more years, this cost is expected to be $1800 the first year and $2000 the second year. as an alternative, a new car can be purchased for $22,000 and be used for 4 years, after which it will be sold for $8,000. the new car will be under warranty the first 4 years, and no extra maintenance cost will be incurred during those years. if the marr is 15% per year, what is the better option?

Grant, inc., acquired 30% of south co.’s voting stock for $200,000 on january 2, year 1, and did not elect the fair value option. the price equaled the carrying amount and the fair value of the interest purchased in south’s net assets. grant’s 30% interest in south gave grant the ability to exercise significant influence over south’s operating and financial policies. during year 1, south earned $80,000 and paid dividends of $50,000. south reported earnings of $100,000 for the 6 months ended june 30, year 2, and $200,000 for the year ended december 31, year 2. on july 1, year 2, grant sold half of its stock in south for $150,000 cash. south paid dividends of $60,000 on october 1, year 2. before income taxes, what amount should grant include in its year 1 income statement as a result of the investment?

Melissa is a very generous single woman. before this year, she had given over $11,400,000 in taxable gifts over the years and has completely exhausted her applicable credit amount. in the current year, melissa gave her daughter riley $100,000 and promptly filed her gift tax return. melissa did not make any other gifts this year. how much gift tax must riley pay the irs because of this transaction?

Gary lives in an area that receives high rainfall and thunderstorms throughout the year. which device would be useful to him to maintain his computer?